France to open up Sunday shopping, kick-off deregulation drive

PARIS (Reuters) - France will let shops open more often on Sundays and look to resolve disputes over firings more rapidly in a reform drive intended to lift the flagging economy, according to a draft bill seen by Reuters on Tuesday. The legislation, which includes plans to deregulate the protected legal trade, is due to be unveiled next month alongside a separate bill covering health care professionals. Responding to EU demands to cut red tape, Economy Minister Emmanuel Macron's reform will not go as far as some politicians have demanded, but it nevertheless breaks taboos and risks angering President Francois Hollande's parliamentary majority. The bill will let shops open up to 12 Sundays a year from five currently, with more flexibility in tourist areas, which have long-envied London's seven-day-a-week shopping culture. Big stores say the present rules belong to a different age and have demanded an overhaul for years, saying more trading hours will enable them to create jobs and fight competition from non-stop Internet retailers. But it's a hot-potato issue in France and one that has led to protests and trials, with unions saying it hurts workers' rights and small shop keepers worried that they will not be able to compete against the major chains. Another contentious issue is how to speed up labor courts, which sometimes take more than two years to rule on disputed firings. The draft bill suggests setting a deadline of three months, with pre-set compensation rates also a possibility. In a bid to help free-up the depressed real-estate market, the law aims to change how notaries work, shaking up a centuries-old profession that enjoys rare legal protection. Equivalent to Britain's solicitors, or U.S. notaries public, France's notaries can prevent competitors from opening offices in their neighborhoods and enjoy lucrative profit margins that are believed to be much bigger than the private sector average. The bill proposes capping their rates, except on the most expensive real estate deals, while only the Justice Ministry able to decide if new notary offices can open in any given area. Government officials hope the legislation will unleash new sources of growth, but are not putting a precise figure on its impact. Nonetheless, they hope it will convince EU partners that France is serious about overhauling its hidebound economy and persuade them to back Paris's 2015 budget, despite the fact it reneges on previous deficit-cutting commitments. (Reporting by Emmanuel Jarry, Ingrid Melander and Jean-Baptiste Vey; Editing by Crispian Balmer)